Starting with Windows 11 25H2 Build 26200.7019 (or 26100.7019 on 24H2) and newer, “Update and shut down" will shut down, not reboot.
Microsoft admits long-standing Windows 11 driver 0x80070103 error, says it can’t fully fix the issue
Microsoft admitted that it's aware of trouble downloading/installing drivers on Windows 11, and it's taking steps to reduce 0x80070103 error.
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